Monday, November 15, 2010

There was a rally today followed by a slip lower in stocks for a lower S&P 500 close. The action today works well with the alternate count seen in yesterday's update calling for a "3rd of a 3rd" wave lower. Actually wave [3] of iii of (iii) should be underway for a weak day tomorrow.

So far the action since the peak looks quite choppy. Even if a zigzag correction is unfolding from the highs, look for one last low tomorrow to complete a double zigzag. This view works well with the modestly oversold technical picture. A sharp move lower will extend the decline for several more days however.

The view expressed identifies the rally since 8/31 as a zigzag. If this is not correct, there have likely been two large impulses higher within a larger impulse.

With a complete count in place, a decline lasting for at least the majority of a year should be underway.

There was a rally today followed by a slip lower in stocks for a lower S&P 500 close. The action today works well with the alternate count seen in yesterday's update calling for a "3rd of a 3rd" wave lower. Actually wave [3] of iii of (iii) should be underway for a weak day tomorrow.

So far the action since the peak looks quite choppy. Even if a zigzag correction is unfolding from the highs, look for one last low tomorrow to complete a double zigzag. This view works well with the modestly oversold technical picture. A sharp move lower will extend the decline for several more days however.

The view expressed identifies the rally since 8/31 as a zigzag. If this is not correct, there have likely been two large impulses higher within a larger impulse.

With a complete count in place, a decline lasting for at least the majority of a year should be underway.

My trading philosophy is 95% based on my own Elliott Wave analysis of the S&P 500. I try to keep my analysis and trading as simple as possible and do not use trend lines, channels, or definite retracement, price, or time targets. To me, inspecting the proportionality and symmetry of a market's price structure is the key to mastering the principle; it is through this that low-risk, high-reward trading opportunities are found.

Because they are the only things I look at when trading, the quality of the charts I post on this blog are very important to me. I think you will find my work to be the best Elliott Wave analysis of the S&P 500 on the internet.